Thoma Bravo

Thoma Bravo, LP, is an American private equity and growth capital firm headquartered in Chicago with an additional office in San Francisco.

Thoma Bravo, LLC
TypePrivately-held limited liability company
IndustryPrivate Equity
PredecessorsGolder Thoma & Co.
Golder Thoma Cressey Rauner (GTCR)
Thoma Cressey Equity Partners
Thoma Cressey Bravo
Founded2008 (2008)
FoundersCarl Thoma
Orlando Bravo
Lee Mitchell
Scott Crabill
HeadquartersChicago, Illinois
ProductsInvestments, private equity funds
AUMUS$30 billion[1]
Number of employees
60
Websitethomabravo.com
Thoma Cressey Equity Partners logo in use prior to 2007 when the firm changed its name

Thoma Bravo has done 230 software deals worth over $68 billion since 2003 and oversees a portfolio of 38 software companies that generate some $12 billion in annual revenue and employ 40,000 people.[2] In October 2019, Forbes estimated the value of the firm, which is owned entirely by Orlando Bravo and a handful of his partners, at $7 billion.[2] In January 2019, Thoma Bravo was managing private equity funds representing over $30 billion in equity commitments.[3] Thoma Bravo is the successor to the firm Golder Thoma & Co., which was established in 1980 by Stanley Golder and Carl Thoma.

In February 2019, the French business school HEC Paris, in conjunction with Dow Jones, named Thoma Bravo the best-performing buyout investor in the world after studying 898 funds raised between 2005 and 2014.[4] According to public data analyzed by Forbes, its funds returned 30% net annually, and since the beginning of 2015, Thoma Bravo has sold or listed 25 investments worth a total of $20 billion, four times their cost.[2]

In October 2019, Thoma Bravo, co-founder and managing partner Orlando Bravo, was named the first Puerto Rican-born billionaire as he debuted at 287th place on the Forbes 400 ranking of the richest Americans.[2]

History

In 1980 Stanley Golder and Carl Thoma established Golder Thoma & Co.[5] Golder Thoma & Co. has been credited as creating the “consolidation” or “buy and build” investment strategy.[6][7] In 1984, after recruiting Bryan Cressey to join the firm from First Chicago, the firm's name was changed to Golder Thoma Cressey and with the promotion of Bruce Rauner to partner, it became Golder, Thoma, Cressey, Rauner, Inc. (GTCR).[8]

In 1998 the firm became two firms: GTCR Golder Rauner to raise larger funds and pursue larger investments; and Thoma Cressey Equity Partners, to continue the firm's longstanding focus on the "middle market".[9]

Thoma Cressey Equity Partners began investing in the enterprise software sector in 2002 with the acquisition of Prophet21, a provider of software for durable goods distributors.[10]

In 2008, Bryan Cressey established a separate healthcare services fund, forming Cressey & Co, a small healthcare-focused private equity firm.[11][12]

Thoma Cressey Bravo became Thoma Bravo after Cressey’s departure. Led by managing partners Carl Thoma, Orlando Bravo, Lee Mitchell and Scott Crabill, the firm was established as a successor to Thoma Cressey Bravo. The firm closed its 12th fund in September 2016, with $7.6 billion.[13] In August 2017, Thoma Bravo acquired Malvern-based Frontline Education.[14] Thoma Bravo raised $12.6 billion for its 13th fund, which was announced in January 2019.[15]

Operations

Thoma Bravo is led by managing partners Carl Thoma, Orlando Bravo, Lee Mitchell, Scott Crabill and Holden Spaht, along with a team of approximately 35 investment staff and 70 total employees.[16]

Thoma Bravo focuses on application and infrastructure software and technology-enabled business service sectors, and uses a "consolidation" or "buy and build" investment strategy.[17]

Investment funds

Thoma Bravo invests through a series of private limited partnerships, and its investors include a variety of pension funds, endowments and other institutional investors. Since Thoma Bravo’s establishment in 2008, it has raised 13 flagship private equity funds[18][19] and its second Discover midmarket focused fund.[20]

Fund Founded Committed Capital ($m)
Fund XII 2016 $7,600[18]
Discover Fund 2015 $1,074[21]
Special Opportunities Fund II 2015 $1,065[22]
Fund XI 2014 $3,650[23]
Special Opportunities Fund 2013 $ 418.4[24]
Fund X 2011 $1,250[25]
Fund IX 2008 $ 822.5[26]

Transactions
Embarcadero Technologies 2007 Provider of application performance tools.[27]
Hyland 2007 Provider of enterprise content management.[27]
Blue Coat 2011 Provider of hardware, software, and services designed for cybersecurity and network management[28]
Infogix, Inc. 2015 Provider of transaction controls monitoring and predictive analytics.[29]
Riverbed 2015 Provider of application performance infrastructure.[27]
Qlik 2016 Provider of visual analytics.[30]
Elemica 2016 Supply chain operating network for the process industries.[31]
Bomgar 2016 Secure access vendor.[32]
TRADER Corporation 2016 Canadian digital automotive marketplace and software provider.[33]
Imprivata 2016 Provider of security software for the healthcare industry.[34]
T2 Systems 2016 Provider of parking management technology.[35]
Lexmark Enterprise Software 2017 Provider of imaging software technologies[36]
Kofax 2017 Provider of document capture software.[27]
Symantec Identity Services 2017 Provider of website security certificates[37]
ABC Financial Services, Inc. 2017 Nations leading software and billing provider for the health and fitness industry.[38]
SolarWinds 2017
Motus, LLC 2018 Thoma Bravo merged Motus with Runzheimer, creating the leading provider of mileage reimbursement technologies serving the nation's most complex transportation companies.[39]
Quorum Software 2018 Provider of Oil and Gas Software[40]
Barracuda Networks 2018 Provider of network security products for data storage & disaster recovery, content security, and networking & application delivery[41]
MeridianLink and CRIF Lending 2018 Rollup of bank and credit union lending software providers[42]
Imperva 2018 Cybersecurity provider[43]
Veracode 2018 Provider of application security testing[44]
Idaptive 2018 Provider of identity-as-a-service (IDaaS) and advanced access management technologies.[27]
Apttus 2018 Provider of quote-to-cash and other revenue management systems for Salesforce CRM.[45]
Aucerna 2019 Provider of Economic Oil and gas Software[46]
ConnectWise 2019 Software maker for managed services providers[47]
Ellie Mae 2019 Cloud-based mortgage financier.[27]
Dynatrace 2019 Digital Performance Management (IPO from Thoma Bravo portfolio after taking Compuware private in 2014)
Sophos 2020 Security software and hardware company[48]
Instructure 2020 Educational technology company[49]
Exostar 2020 Identity access management and secure cloud solutions company for highly-regulated industries such as aerospace and defence[50]
RealPage 2020 Software company providing technology platforms for owners and managers of rental properties.[51]
Service Leadership Inc 2021 Helping IT Solution Providers build shareholder value and reach top quartile profitability.[52]

References
  1. Recent Press Release
  2. Gara, Antoine. "Meet Wall Street's Best Dealmaker: New Billionaire Orlando Bravo". Forbes. Retrieved 2019-10-05.
  3. "Thoma Bravo Fund XIII raises $12.6 bln". pehub.com. Retrieved 2019-01-29.
  4. "The 2018 HEC-DowJones Private Equity Performance Ranking". HEC Paris. Retrieved 2019-10-05.
  5. "A Brief History of Private Equity - Financial Poise". Financial Poise. 2013-07-01. Retrieved 2017-06-29.
  6. "Company Information". www.massinvestordatabase.com. Retrieved 2017-06-29.
  7. "Flexera Software Awarded Illinois Venture Capital Association's 2012 Private Equity Portfolio Company of the Year". www.flexerasoftware.com. Retrieved 2017-06-29.
  8. "Just Who Is Bruce Rauner?". Chicago magazine. Retrieved 2017-06-29.
  9. "Chicago Buyout Firm to Split Into 2 Investment Groups". American Banker. Retrieved 2017-06-29.
  10. "Thoma Cressey Equity Partners and LLR Partners Announce Sale of Prophet 21 Inc. to Activant Solutions Inc". www.businesswire.com. 17 August 2005. Retrieved 2017-06-29.
  11. "Dealmakers' boot camp; Golder Thoma: A buyout industry proving ground", Crain's Chicago Business, September, 2004 by Steve Daniels
  12. "Personality Profile: Cressey Takes Specialization To The Next Level." Buyouts, June 23, 2008
  13. de la Merced, Michael J. (12 September 2016). "Thoma Bravo Raises $7.6 Billion Fund to Pursue More Tech Deals". Deal B%k: NYTimes. Retrieved 29 June 2017.
  14. "Malvern-based Frontline education acquired by private equity firm Thoma Bravo". www.bizjournals.com. Retrieved 2017-09-28.
  15. "Thoma Bravo raises $12.6 billion for latest private equity fund". Reuters. 2019-01-29. Retrieved 2019-03-15.
  16. "Team Members | Thoma Bravo". thomabravo.com. Retrieved 2017-06-29.
  17. "Thoma Bravo, LLC: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 2017-06-29.
  18. Merced, Michael J. De La (2016-09-12). "Thoma Bravo Raises $7.6 Billion Fund to Pursue More Tech Deals". The New York Times. ISSN 0362-4331. Retrieved 2017-06-29.
  19. "Thoma Bravo raises $12.6B as PE continues tech investing push | PitchBook". pitchbook.com. Retrieved 2019-03-15.
  20. Comtois, James (2018-04-26). "Thoma Bravo closes second Discover fund at $2.4 billion hard cap". Pensions & Investments. Retrieved 2019-03-15.
  21. "Thoma Bravo Hires Smith as Partner on $1B Discover Fund | FINalternatives". www.finalternatives.com. Retrieved 2017-06-29.
  22. "Thoma Bravo raises over $1 bln for second special opportunities fund - PE Hub". PE Hub. 2015-04-16. Retrieved 2017-06-29.
  23. "Thoma Bravo closes $1.065B fund, eyes software companies". RCR Wireless News. 2015-04-17. Retrieved 2017-06-29.
  24. "Exclusive: Thoma Bravo seeks top-up fund amid tech LBO bonanza". Reuters. 20 February 2015. Retrieved 2017-06-29.
  25. Primack, Dan. "Thoma Bravo Co-Founder Talks Debt and That Giant New Fund". Fortune. Retrieved 2017-06-29.
  26. Marek, Lynne (28 February 2012). "Thoma Bravo raises $1.25 billion private equity fund". Pensions & Investments. Retrieved 29 June 2017.
  27. "Thoma Bravo | Companies". www.thomabravo.com. Retrieved 2019-06-26.
  28. "Thoma Bravo Acquires Blue Coat Systems for $1.3 Billion". www.thomabravo.com. Retrieved 2020-02-24.
  29. Dorbian, Iris (5 January 2016). "H.I.G. sells Infogix to Thoma Bravo". PE HUB Network. Retrieved 5 July 2017.
  30. Team, Trevis (31 August 2016). "Qlik Stock Withdrawn As Thoma Bravo Completes Acquisition". Forbes. Retrieved 5 July 2017.
  31. Blumenthal, Jeff (7 July 2016). "Chesco company formed by chemical industry giants bought by private equity firm". Philadelphia Business Journal. Retrieved 5 July 2017.
  32. "Thoma Bravo Acquires Bomgar from TA Associates". Finsmes. 23 June 2016. Retrieved 5 July 2017.
  33. Vishaka, George (1 July 2016). "Apax Partners to sell Trader Corp to Thoma Bravo for C$1.57 billion". Reuters. Retrieved 5 July 2017.
  34. Hufford, Austen (13 July 2016). "Imprivata to Be Acquired by PE Firm Thoma Bravo for $544 Million". Wall Street Journal. Retrieved 5 July 2017.
  35. "T2 SYSTEMS HAS BEEN ACQUIRED BY THOMA BRAVO". William Blair. 29 September 2016. Retrieved 5 July 2017.
  36. "Thoma Bravo Completes the Acquisition of Lexmark Enterprise Software | Kofax". www.kofax.com. Retrieved 2017-08-03.
  37. Reuters. "Symantec Plans to Sell This Business for Nearly $1 Billion". Fortune. Retrieved 2017-08-03.
  38. Gorton, Matthew. "Thoma Bravo Completes Acquisition of ABC Financial". Hiltzik Strategies. Retrieved January 2, 2018.
  39. LLC, Thoma Bravo. "Thoma Bravo Acquires and Merges Motus and Runzheimer to Create Market Leading Vehicle Management Platform". www.prnewswire.com. Retrieved 2018-03-15.
  40. "Thoma Bravo to Acquire Quorum Software | Thoma Bravo". Retrieved 2019-02-08.
  41. Roof, Katie. "Security business Barracuda Networks acquired for $1.6 billion". TechCrunch. Retrieved 2017-11-28.
  42. Gorton, Matthew. "Thoma Bravo Acquires and Merges MeridianLink and CRIF Lending Solutions to Create Market Leading Financial Services Software Platform". MeridianLink. Retrieved 2018-09-28.
  43. "Imperva Announces Agreement to Be Acquired by Thoma Bravo". Thoma Bravo. 2018-10-10.
  44. "Thoma Bravo to Acquire Veracode Software from Broadcom Inc". Thoma Bravo. 2018-11-05.
  45. "Thoma Bravo buys majority stake in Apttus in unexpected ending". TechCrunch. Retrieved 2019-07-02.
  46. "Thoma Bravo to Acquire Aucerna". Thoma Bravo. 2019-02-07.
  47. "Thoma Bravo to Acquire Connectwise". Thoma Bravo. 2019-02-07.
  48. "Sophos Announces Completion of Take-Private Acquisition by Thoma Bravo". 2020-03-02.
  49. "Thoma Bravo Completes Acquisition of Instructure". 2020-03-24.
  50. "Thoma Bravo Announces Strategic Growth Investment in Exostar". 2020-06-02.
  51. Lombardo, Miriam Gottfried and Cara (2020-12-21). "WSJ News Exclusive | Thoma Bravo Agrees to Buy RealPage for $9.6 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-12-22.
  52. "ConnectWise Announces Acquisition of Service Leadership, Inc". 2021-02-01.
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